It is hard to ignore the huge increase in flooding in parts of the UK over the last few years. In fact, according to the most recent Environment Agency estimates 1 in 6 homes in England and Wales is at risk of flooding. With the varying weather conditions the UK experiences every year this trend will certainly continue.

Buying a property that has suffered from flooding in the past or a property in a high flood risk area can be a cause for concern for a number of reasons. There is the obvious risk that the property may flood again damaging the property itself and an occupiers belongings which can be devastating as well as costly. There is also concern that it may be far more difficult to obtain affordable buildings and contents insurance even if the property hasn’t ever been known to flood. Mortgage lenders will refuse to lend on properties where insurance cannot be obtained. This of course can in turn have a negative effect on a current owner trying to sell as well as a potential buyer as it limits the saleability of a property.

You may purchase a property which is considered at high risk for flooding and it may never flood in your lifetime but the problem of not being able to obtain insurance may still result in you being unable to sell or mortgage your property.

In the UK flood risk insurance is currently provided under “the Statement of Principles on the provision of flood insurance” as per the agreement between the Association of British Insurers and the Government whereby UK banks had an agreement with the Government that they would provide insurance for homes that were at risk of flood if the government spent a certain amount of money on flood protection measures. The statement binds insurers to offer flood insurance to homes and small businesses where the risk of flooding is lower than a 1 in 75 year event and where the property is already insured. For properties at a greater risk, insurance is available on the condition that flood defences are planned to be built to reduce the risk below that limit within 5 years.  However, this deal is to come to an end July 31st this year which could leave homeowners with no protection as the Insurance Industry wants to see more commitment from the Government on spending on flood defences before it commits itself any further.

You could be forgiven for assuming that if your property doesn’t lie near a river or other body of water that you have nothing to worry about but flooding can occur in some more unlikely places.

Most people are aware of the risks of fluvial flooding from rivers overflowing and tidal flooding in coastal areas but most of the recent flooding occurring around the country is a result of much more complicated rising groundwater levels known as groundwater flooding; and surface water flooding known as Pluvial flooding (i.e surface water flooding). These types of floods can happy anywhere in the UK as a result of heavy or continued rainfall. In reality, there are an estimated 1.4 million homes in the UK at risk of fluvial and tidal flooding but double that amount; 2.8 million are at risk of surface water flooding. Surface water flooding accounts for around 65% of all floods in the UK. It can be more of a risk due to its sudden and unexpected nature.

In the Chesterfield area, more than 350 homes were flooded in June 2007 and a number of homes are at risk of flooding in future

The purchase of your home or a property for an investment is one of the biggest and most important purchases you will make and in our opinion a flood risk search should therefore be carried out regardless of the property location.

If your flood report does reveal that there is a high risk of floods or that the property has flooded in the past, it is important to check that suitable insurance (with no flood exclusions or loaded premiums) can be obtained prior to entering into a contract to purchase. Often specialist insurance can be obtained although this could be at a much higher premium and in light of the above may be revoked in the future and leave you with an unmortgageable and possible unsaleable property.

If you have concerns about how flood risks might affect your sale or purchase, please contact us for more information and the searches we can provide to mitigate your risk and ensure your investment is not at risk.

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